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The ETF Board was established under Act No-46 of 1980 and commenced operations on 1st March 1981. It was established under the Ministry of Labour and brought under the Ministry of Finance in 1997. Now HE the President functions as the Minister in charge of ETF in his capacity as the Minister of Finance. All public sector employees who are not entitled to the Govt. Pension Scheme and all private sector employees are members of this Fund while their employers are required to remit 3% of the gross earnings of their employees to the Fund, monthly. Hence, unlike the EPF, only the employer makes a contribution on behalf of the employee/member and hence, it is a non-contributory benefit to the member. During the past 30 years, the Fund has grown rapidly and achieved a total Fund of about Rs 122 Billion by end of July 2011whilst serving about 2.1 Million members on behalf of whom about 60,000 Employers contribute to the Fund. |
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| Main Activities of the Board |
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Collection of contributions from Employers. |
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Prudent investment of such Funds. |
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Providing a range of social and welfare benefits to members and paying out claims. |
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Enforcement and Legal activities including tracking of non paying employers and collecting of surcharge income. |
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Maintaining Member Accounts and issuing of Annual member statements. |
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Declaration of a Dividend to members based on the profits earned by the Fund, annually. |
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Enrolling Self employed persons as members of the Fund. |
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| Member Benefits |
A main objective of establishing the Fund was to provide non-contributory welfare benefits to its members while at present the following 08 schemes are in operation. These benefits are granted irrespective of the balance in the members account and also no deductions are made from their accounts for the benefits paid while the members account is credited with the full interest and dividend declared by the Fund each year. |
Benefits scheme |
Value |
Death Benefits |
Rs. 50,000/- |
Permanent Disablement |
Rs. 200,000/- |
Eye lens implant |
Rs. 9,000 each eye |
Heart Surgery Assistance |
Rs. 150,000/- |
Kidney Transplant Assistance |
Rs. 150,000/- |
Hospitalization Scheme |
Rs. 25,000/- per year (Rs. 50,000/- for life time). |
Year-05 Scholarships |
Rs.15,000/- each for 3,000 Scholarships per year. |
"VIYANA" Housing loan Scheme. |
Upto Rs. 1,500,000 at concessionary rates of interest |
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| Main Operations |
According to the Corporate Plan of the Board, the objective was to achieve a total Fund of Rs.100 billion by year 2010. All operational activities were geared towards this effort, and the performance of all activities have increased in 2008 / 2009 as seen by the following statistics. |
Activity |
2009 |
2008 |
2007 |
Contributions from Employers |
8732 million |
8304 million |
6912 million |
Investment Income |
14263 million |
11280 million |
7176 million |
Surcharge Income |
161 million |
156 million |
108 million |
Enforcement and Legal recoveries |
709 million |
600 million |
432 million |
Claims refund payments |
6401 million |
4944 million |
4200 million |
Benefit Claims payment |
170 million |
114 million |
120 million |
Net Profit |
13961 million |
9,603 million |
7,434 million |
Size of the Member's Fund |
103 billion |
89 billion
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73 billion |
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| Investments |
Over 91% of the ETF Investments are placed in Government Securities yielding a guaranteed high return in the prevailing market conditions. Statutorily, the Board should declare an annual Dividend + Interest to all its members and the Board declared 13.0% in 2009 and has budgeted for a rate of 11.5% in 2010. |
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| Regional Network |
The Board has a network of Regional offices in major cities such as Colombo, Gampaha, Kandy, Ratnapura, Kalutara, Galle, Matara, Kurunegala, Anuradhapura, Hatton, Badulla., Kegalle, Hambantota and Ampara. This has further strengthen the Enforcement activities in the respective areas and increase the Revenue. |
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| Information Technology |
Major innovations in the IT field has been launched as follows, |
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The main Computer system has been upgraded with adequate capacity to serve the needs of the Members speedily. |
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All Regional Offices have been linked with the Head Office Computer system to function online. |
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Payment of Claims have been decentralized in 03 Regional Offices (Gampaha, Kandy and Matara) to ensure a more member friendly service and this facility would be extended to other Regional Offices as well in future. |
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The facility for the Employers to pay their contributions online (Internet Banking) has been in operational since September 2008. This would be a major development in the receipt of Contributions and the process would be more Employer friendly. |
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The Member Accounts are being updated to ensure that all accounts would be online from year 2010. |
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| Self Employment |
The Board is focusing its active attention to promote Self employment activities by enrolling more Self employed members to the Fund. In this connection, Self employment promotion officers have been appointed to cover major districts. The main target groups are the Samurdhi recipients, Diary farmers, Newspaper Agents, Lottery Agents and Three wheel drivers. |
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| Future Plans |
The ETF Board is still without its own Office complex in Colombo, and operates 04 rented offices in the Narahenpita, Nawala area. The Cabinet of Ministers has approved to construct a modern office complex which will house the ETF, the EPF(Labour Dept) and a part of the EPF (Central Bank) as a “one – stop shop”. Construction of this building is expected to be commenced during 2009. |
| The ETF owns a valuable property of 2 ¼ acres at Nawam Mawatha Colombo 02 which is presently leased out as a Car park generating an income of Rs. 1.5 Million per month. We are looking at the possibility of entering in to a joint venture project to develop this property, as a commercial venture. |
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| Achievements in 2008. |
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Featured in the prestigious LMD Magazine (June issue) and ranked 08th place among the Public Enterprises for 2007 while the same Magazine ranked the Board the 12th place in 2006. |
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Highlighted in the Ministry of Finance Annual Report for 2007 as the Organization having the highest net asset value of Rs. 66,735 million and profits of Rs. 4,196 million. |
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